Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — FY2022 Earnings Presentation
49 slides from Bausch + Lomb's earnings presentation, Feb 1, 2023
Slide 1: 4Q22 & FY22 Financial Results
4Q22 & FY22 Financial Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward- Service will be sought or obtained), the ability of the Company and BHC to satisfy the conditions required to maintain the tax-f
Slide 3: Non-GAAP Information; Comparable Information
Non-GAAP Information; Comparable Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles Company. Comparable means information that compares a company to other companies. The information is a (GAAP), the Company uses certain non-GAAP
Slide 4: Brent Saunders, Chief Executive Officer and Chair of the Board of Directors
Brent Saunders, Chief Executive Officer and Chair of the Board of Directors Brent Saunders Brent Saunders has more than 25 years of experience in various aspects of health care and has been in leadership roles at several prominent global pharmaceutical and health care companies, including Schering-P
Slide 5: Today’s Topics
Today’s Topics 4Q22 & FY22 Highlights & Financial Results Outlook Upcoming Catalysts 4 4
Slide 6: Bausch + Lomb Overview
Bausch + Lomb Overview Bausch + Lomb is…. 170 years of success The Most Highest brand Global leader as a leading eye Integrated Eye awareness in in Consumer health brand Care Company1 eye care2,3 Eye Health5 #3 Largest 80+% of world ~100 countries and Eye Health population has access ~12,900 employe
Slide 7: 2022 Bausch + Lomb Separation Progress
2022 Bausch + Lomb Separation Progress1 Filed Registration Statement and Preliminary Prospectus for Proposed Initial Public Offering (“IPO”) Launched Roadshow and IPO BLCO First Day of Trading (May 6, 2022) on NYSE and TSX BLCO is Not a Guarantor of BHC Debt BHC Announced the Unrestricting of BLCO U
Slide 8: 4Q22 & FY22 Accomplishments
4Q22 & FY22 Accomplishments Investing in Bausch + Lomb Continued Momentum Expanding Into New (4Q22 vs. 4Q21 and FY22 vs. FY21) Categories Growing in Key Portfolios Product Categories Faster Than Market 4Q22 & FY22 0% Reported Revenue 4Q22 & FY22 +10% ~50% 5% Organic Revenue1,2 reported revenue growt
Slide 9: Accomplished Latest Guidance Targets for 2022
Accomplished Latest Guidance Targets for 2022 June 2022 August 2022 November 2022 FY22 Guidance Guidance Guidance Actual Total Revenues $3.75B - $3.80B $3.75B - $3.80B $3.70B - $3.75B $3.768B Organic Revenue Growth1 4-5% 4-5% 4-5% 5% Adjusted EBITDA (non-GAAP)1 $740M - $780M $740M - $780M $715M - $7
Slide 10: 4Q22 Financial Highlights & Segment Drivers
4Q22 Financial Highlights & Segment Drivers Ophthalmic Total Company Revenue Vision Care Surgical Pharmaceuticals Millions USD 27% 1,001 996 35% 61% 54 FX Impact4 947 $626M 53% $188M $182M 39% 65% 20% 4Q21 4Q22 Consumer Contact Lens Implantables Equipment U.S. International +5% Consumables/Other org
Slide 11: FY22 Financial Highlights & Segment Drivers
FY22 Financial Highlights & Segment Drivers Ophthalmic Total Company Revenue Vision Care Surgical Pharmaceuticals Millions USD 27% 3,765 3,768 37% 60% 184 FX Impact3 3,581 $2,373M 53% $718M $677M 40% 63% 20% FY21 FY22 Consumer Contact Lens Implantables Equipment U.S. International +5% Consumables/Ot
Slide 12: Total Bausch + Lomb P&L (Non-GAAP)
Total Bausch + Lomb P&L1 (Non-GAAP)2 Bausch + Lomb 4Q22 4Q21 Reported Change Constant Currency2 Organic Change2,5 Vision Care Revenue $626M $626M 0% 5% 5% Surgical Revenue $188M $198M (5%) 2% 4% Ophthalmic Pharmaceuticals Revenue $182M $177M 3% 7% 7% Total Revenue $996M $1,001M 0% 5% 5% Adj. Gross P
Slide 13: Total Bausch + Lomb P&L (GAAP)
Total Bausch + Lomb P&L1 (GAAP) Bausch + Lomb 4Q22 4Q21 Reported Change Constant Currency2 Organic Change2,4 Vision Care Revenue $626M $626M 0% 5% 5% Surgical Revenue $188M $198M (5%) 2% 4% Ophthalmic Pharmaceuticals Revenue $182M $177M 3% 7% 7% Total Revenue $996M $1,001M 0% 5% 5% Gross Profit $520
Slide 14: Total Bausch + Lomb P&L (Non-GAAP) – FY22
Total Bausch + Lomb P&L1 (Non-GAAP)2 – FY22 Constant Organic Bausch + Lomb FY22 FY21 Reported Change Currency3 Change3,5 Vision Care Revenue $2,373M $2,343M 1% 6% 6% Surgical Revenue $718M $718M 0% 6% 8% Ophthalmic Pharmaceuticals +5% organic revenue growth1,2,5 $677M $704M (4%) 0% 0% Revenue Total
Slide 15: Total Bausch + Lomb P&L (GAAP) – FY22
Total Bausch + Lomb P&L1 (GAAP) – FY22 Bausch + Lomb FY22 FY21 Reported Change Constant Currency2 Organic Change2,4 Vision Care Revenue $2,373M $2,343M 1% 6% 6% Surgical Revenue $718M $718M 0% 6% 8% Ophthalmic Pharmaceuticals Revenue $677M $704M (4%) 0% 0% Total Revenue $3,768M $3,765M 0% 5% 5% Gros
Slide 16: Cash Flow and Balance Sheet Summary
Cash Flow and Balance Sheet Summary 4Q22 FY22 Cash flow from operations $159M $345M Adj. Cash flow from operations (non-GAAP)1,3 $167M $383M CapEx $50M $175M Debt2 $2,488M Strong balance sheet with opportunity to further optimize interest cost at full separation while maintaining flexibility to purs
Slide 17: Outlook
Outlook BAUSCH+LOMB
Slide 18: 1Q23 Outlook Assumptions
1Q23 Outlook Assumptions1 Plan to provide full year guidance at 1Q23 earnings, given the new CEO transition • Organic Revenue Growth2,3: Expected to be in-line with overall eyecare market growth in 1Q23 • 1Q23 Quarterly Phasing: Expect 1Q23 adj. EBITDA2 to be lower than 1Q22, mainly driven by curren
Slide 19: Upcoming Catalysts
BAUSCH# Upcoming Catalysts 18
Slide 20: LUMIFY: Strong Established Brand with Expansion Opportunities
LUMIFY®: Strong Established Brand with Expansion Opportunities +21% reported revenue growth in FY22 vs. FY21 Expansion Opportunities for Future Growth in the Lumify® Franchise +$125M brand4 expanding through geographies and line extensions Global expansion with 6 countries, including U.S. and Canada
Slide 21: SiHy Launch Expanding for Future Growth
SiHy Launch Expanding for Future Growth additional SVS country launches ~5 expected in 2023, including China 2023-2024 Multi-focal and toric launch expected +46% reported revenue growth ~25 countries 70% in FY22 vs. FY21, including 46% reported have launched SVS1 of INFUSE® revenue growth in 4Q22 vs
Slide 22: AcuFocus Acquisition: Enhancing Surgical Portfolio with IC-8 Apthera IOL
AcuFocus Acquisition: Enhancing Surgical Portfolio with IC-8® Apthera™ IOL + First and only small aperture non-toric extended depth of focus (EDOF) IOL for certain cataract patients who have as much as 1.5 diopters of corneal astigmatism and wish to address presbyopia at the same time + Launching no
Slide 23: IC-8 Apthera IOL: Breakthrough Design Offering New Possibilities for Patients
IC-8® Apthera™ IOL: Breakthrough Design Offering New Possibilities for Patients + The embedded FilterRing™ component delivers high OQ™ (optical quality) light to the retina and filters out distorted low OQ™ light entering the eye, providing a clear, continuous range of vision + The distinctive desig
Slide 24: Expanding our Intraocular Lens Offering
Expanding our Intraocular Lens Offering1 Lux Premium IOL IC-8® Apthera™ enVista Envy™ enVista Aspire™ enVista Dynamic™ (enVista® Trifocal IOL) (enVista® Extended (enVista® Extended Depth Range Monofocal IOL) of Focus IOL) (EU Countries) (EU Countries) (EU Countries) (EU Countries) (EU Countries) Lux
Slide 25: NOV03: PDUFA Date June 2023
NOV031: PDUFA Date June 2023 Second Phase 3 (MOJAVE) Efficacy Endpoints: Pivotal Phase 3 Trial GOBI Data on Total Corneal Staining (sign) and NOV03 Now Published in Ophthalmology Ocular Dryness (symptom) at Day 57 Investigational first in class treatment for Dry Eye Disease (DED) associated with Mei
Slide 26: R&D Delivering Opportunities in High Growth, High Margin Categories
R&D Delivering Opportunities in High Growth, High Margin Categories1 Expected to Launch More than 15 Products in 2023 Enhanced PreserVision® AREDS 2 Formula Mini Vision Care / Soft Gels with OCUSorb™ Consumer Growing market Lumify ® share with new geo-expansion PreserVision® products, line extension
Slide 27: 2023 Strategic Focus
2023 Strategic Focus1 • Strong performance targeted in key franchises: Ocuvite ® + PreserVision® , Lumify® , Artelac® , BioTrue® Global Mega Brand and core vision care brands (BioTrue® ONEday, Bausch + Lomb Continue momentum ULTRA®, Daily SiHy) in current portfolio • Continued geo-expansion and line
Slide 28: Integrated platform uniquely positions B+L to serve eye care needs
Integrated Lenses Surgical platform uniquely Optometrists Ophthalmologists positions B+L Helping you see better to serve eye to live better care needs Consumer Health Ophthalmic Pharma 27 1. TechSci Research, May 2021, Survey of 200 respondents across the globe. Peers include: Essilorluxottica, John
Slide 29: Appendix
Appendix BAUSCH+LOMB
Slide 30: Pipeline and Upcoming Milestones – Vision Care
Pipeline and Upcoming Milestones1 Vision Care Product Status Upcoming Milestone Planned launch of SVS into more countries in SiHy Daily Launched in ~25 countries 2023; Multi-focal and toric launch expected in 2023-2024 New range of Daily Disposable cosmetic lens Lacelle® colored contact lenses Appro
Slide 31: Pipeline and Upcoming Milestones – Surgical
Pipeline and Upcoming Milestones1 Surgical Product Status Upcoming Milestone enVista Envy™ Canada, EU and U.S submissions in progress Expect US, EU, Canada launch in 2024 – enVista® Trifocal IOL (Intraocular Lens) (includes Toric versions and new EyeGility inserter) Clinical Study Report completed 2
Slide 32: Pipeline and Upcoming Milestones – Ophthalmic Pharmaceuticals
Pipeline and Upcoming Milestones1 Ophthalmic Pharmaceuticals Product Status Upcoming Milestone Expected to launch in ~10 additional countries VYZULTA® geo-expansion Launched in 15 countries in 2023+ NOV032 (dry eye disease associated with PDUFA date June 28, 2023 FDA accepted NDA in September 2022 m
Slide 33: Top 10 Revenues – Bausch + Lomb
Top 10 Revenues – Bausch + Lomb Top 10 Revenues (Includes FX Impact) Rank Product/Franchises FY22 4Q22 3Q22 2Q22 1Q22 FY21 4Q21 1 Ocuvite® + PreserVision® $387M $114M $98M $94M $81M $351M $101M 2 Surgical Consumables $384M $100M $91M $100M $93M $377M $105M 3 SofLens® $246M $62M $62M $61M $61M $265M
Slide 34: Segment Reported Revenue
Segment Reported Revenue Vision Care 4Q22 4Q21 Reported Change Organic Change %1,2 Contact Lens Revenue $219M $227M (4%) 4% Consumer Revenue $407M $399M 2% 6% Total Revenue $626M $626M 0% 5% Surgical 4Q22 4Q21 Reported Change Organic Change %1,2 Implantables Revenue $51M $50M 2% 13% Equipment Revenu
Slide 35: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 4Q22 3Q22 2Q22 1Q22 4Q21 Vision Care Contact Lens $219M $222M $213M $215M $227M Consumer $407M $376M $376M $345M $399M Total Revenue $626M $598M $589M $560M $626M Surgical Implantables $51M $47M $50M $46M $50M Equipment $37M $34M $34M $35M
Slide 36: Non-GAAP Adjustments EPS Impact
Non-GAAP Adjustments EPS Impact ($M)2,3 Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Income Earnings per Income Earnings per Income Earnings per Income Earnings per (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact Net
Slide 37: Reconciliation of Reported Operating Income to Adjusted EBITA
Reconciliation of Reported Operating Income to Adjusted EBITA (non-GAAP)1 ($M) (4Q and FY) 4Q 2022 FY 2022 Gross Gross R&D Operating Gross Gross R&D Operating Profit Margin SG&A Expense income Profit Margin SG&A Expense income 2022 GAAP $ 520 52.2% $ 386 $ 78 $ 51 $ 2,004 53.2% $ 1,478 $ 307 $ 207 A
Slide 38: Reconciliation of Reported Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Reported Net Income (Loss) to EBITDA (non-GAAP)1 and Adjusted EBITDA (non-GAAP)1 ($M) Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Net (loss) income attributable to Bausch + Lomb Corporation $ (1) $ 51 $ 6 $ 182 Interest expense, net 44 - 140
Slide 39: Reconciliation of Reported Revenue to Organic Revenue and Organic Revenue Growth
Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1,2 ($M) (4Q22 and FY22) Calculation of Organic Revenue for the Three Months Ended Change in Change in December 31, 2022 December 31, 2021 Reported Revenue Organic Revenue 1,2 Organic Organic Revenue Changes in Revenu
Slide 40: Reconciliation of Reported Revenue to Organic Revenue and Organic Revenue Growth
Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1,2 ($M) (4Q22 and FY22) Calculation of Organic Revenue for the Three Months Ended Change in Change in December 31, 2022 December 31, 2021 Reported Revenue Organic Revenue 1,2 Organic Organic Revenue Changes in Revenu
Slide 41: Reconciliation of Reported Revenue to Organic Revenue and Organic Revenue Growth
Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1,2 ($M) (Q4 and FY) Change in Change in Calculation of Bausch + Lomb Organic Revenue Reported Revenue Organic Revenue 1,2 Organic Organic Revenue Changes in Revenue Revenue Revenue as Exchange (Non- as Divestitures a
Slide 42: Reconciliation of Reported Revenue to Organic Revenue and Organic Revenue Growth
Reconciliation of Reported Revenue to Organic Revenue1,2 and Organic Revenue Growth1,2 ($M) (Q4 and FY) Calculation of Organic Revenue for the Three Months Ended Change in Change in September 30, 2022 September 30, 2021 Reported Revenue Organic Revenue 1,2 Organic Organic Revenue Changes in Revenue
Slide 43: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures EBITDA/Adjusted EBITDA/Adjusted EBITDA Margin EBITDA (non-GAAP) is Net income attributable to Bausch + Lomb Corporation (its To supplement the financial measures prepared in accordance with U.S. most directly comparable U.S. GAAP financial
Slide 44: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITDA (non-GAAP) Adjustments Adjusted EBITDA (non-GAAP) is net income (loss) attributable to the initiatives arise outside of the ordinary course of continuing operations and, as is the Company (its most directly comparable GAAP financial measure) adjusted case with the C
Slide 45: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITDA (non-GAAP) Adjustments (continued) Separation costs and separation-related costs: The Company has excluded certain believes the costs associated with legal settlements and judgments are not routine costs incurred in connection with activities taken to: (i) separate
Slide 46: Non-GAAP Appendix
Non-GAAP Appendix Adjusted Net Income (non-GAAP) periods presented. Management believes that this measure is also useful to Adjusted net income (non-GAAP) is net income (loss) attributable to Bausch + investors as such measure allows investors to evaluate the Company’s Lomb Corporation (its most dir
Slide 47: Non-GAAP Appendix
Non-GAAP Appendix Organic Revenue Growth/Change and Organic Growth/Change Organic revenue growth/change, a non-GAAP ratio, is defined as a change on a period- Acquisitions, divestitures and discontinuations: In order to present period-over- over-period basis in revenues on a constant currency basis
Slide 48: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin in its calculation of Adjusted EBITA. Reference is made to the description above for further Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP details on this change. financial measure) adjusted to exclude amor
Slide 49: Non-GAAP Appendix
Non-GAAP Appendix Adjusted SG&A obscure trends in the Company’s underlying performance on a per share basis. By disclosing this Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative expenses non-GAAP measure, it is management’s intention to provide investors with a meaning